|Bid||125.01 x 1200|
|Ask||146.82 x 800|
|Day's Range||131.76 - 134.77|
|52 Week Range||103.29 - 198.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 6, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||177.23|
Spotify has introduced a new feature that will let users block music from artists they no longer want to hear. A "Don't play this artist" feature appeared in the latest version of the Spotify app for iOS and Android, as first spotted by Thurrot. Engadget reached out to Spotify for more details and will update this post if we hear back.
The question is should investors considering buying eBay stock on the back of the new activist investor push before it reports its Q4 financial results on Tuesday, January 29?
Are you still trying to determine if we're in the grips of a bear or bull market? This strategist's suggestion is to simply listen to the charts and play both sides … or more aptly, the "B-sides" using a pairs play in Spotify (NYSE:SPOT) stock and Pandora (NYSE:P). Let me explain. It wasn't long ago the market sounded like a bear whose grips we'd never recover from if we're to believe the spin generated by the financial media. In fact, the broad-based S&P 500 sank in excess of 20%. That put the index narrowly into bear territory according to a long-standing and popular tool used by investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For their part, Spotify stock was off about 47% from its July all-time-high to late December's trendy and well-played bear market low. At the same time Pandora stock shed roughly half of SPOT's bearish trend in establishing a correction of 23% from its September high. More recently, a surging market off those grizzly sounding corrective lows has found pundits changing their tune and flipping to the other "B-side" or bullish camp while trying to get in sync with a raging and confident rally. Then there's SPOT stock and P stock. * The 10 Best Index Funds to Buy and Hold It shouldn't be surprising to hear that both streaming music providers have rallied strongly over the past month along with the broader market. SPOT has snapped back by nearly 30%. And shares of P have gained roughly 13% while once again turning in about half the volatility of Spotify stock. But what's next you ask? I'd say traders should simply focus on who's grooving with the bears and short SPOT stock. At the same time, appreciate who's on the top of the charts with bulls and go long Pandora shares as part of a pairs trade that plays both B-sides. ### Pairs Stock Strategy: Short Spotify Stock Blame it on the broader market when you look at SPOT stock's larger-than-market correction and subsequent burly rally off lows. At the end of the day, that's the price investors pay, good and bad, when they play in a newer and well-followed growth name like Spotify. As the world's largest streaming music provider, the Spotify platform is similar to what Netflix (NASDAQ:NFLX) is for streaming movies and television. Still, while SPOT is well-situated for continued success, even the best of the best, such as NFLX or an Amazon (NASDAQ:AMZN) do have their ups and downs on the price chart. And right now, SPOT stock looks poised to drop. After hitting fresh all-time-lows in late December, Spotify stock's aggressive rally is encountering potential resistance within its downtrend. The technical barrier extends from roughly $135.50 to $145. The formidable zone is comprised of the former lows, SPOT's most recent lower pivot high from early December, as well as the 38% retracement level dating back to the July all-time-high. The bottom line for Spotify stock? The worst of what's been a substantial correction may be over in the stock, but it may not be either. As part of a pairs trade with P stock, today's technical situation sets up SPOT stock as a short after staging a counter-trend pullback off lows. With shares near $133 and the upper boundary of technical resistance at $145, exposure is limited to just over 9% barring gap risk. ### Pairs Stock Strategy: Go Long Pandora Stock A golden oldie is currently playing in Pandora stock on the price chart. As our other streaming music pairs stock, P's correction into late December established a healthy looking double bottom pivot low, unlike SPOT stock. And it gets better from there. The pattern low is part of a bullish "W" corrective base that has formed since Pandora broke out above a four-year long downtrend line during the summer. That's even more bullish. But that's not all either. Pandora stock's base has also successfully tested the former downtrend resistance line for support. This gives the pattern more "street cred" regarding its technical durability. * 7 Stupidly Cheap Stocks to Buy Now Now, following the rally off P's double-bottom, shares have managed to put together a constructive-looking handle near the base's mid-pivot. Waiting for a breakout above tight zone resistance of $9 to $9.10 would be the logical next step for some technical purists. I get it. But I also wouldn't play it that way either. Pandora stock is part of a pairs play and trying to wait for the timing of two positions for perfect entries is futile at best. As such, and in conjunction with shorting Spotify shares, the other B-side or bullish piece of the spread position signaling traders to go long Pandora stock is ready today. Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post How to Tap Into Big Gains With a Pairs Play in Spotify Stock and Pandora appeared first on InvestorPlace.
Tech stocks were among the worst-performing names in the stock market during the correction of late 2018. And Apple (NASDAQ:AAPL) stock was one of the worst-performing tech companies during that period. For AAPL stock, it was an autumn to forget. Apple stock, whose market cap had reached $1 trillion before the correction, in short order shed $300 billion of value as the shares plummeted from a high of $233 to just $142 per share at their bottom early this January. However, like most of the market, Apple stock has found its footing again, as the shares have rebounded about 10% off their lows. The drop to $142 was almost certainly an overreaction. At its current level, is Apple stock still a good name to buy on weakness? InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks You Really Need to Look at for 2019 ### The Cons of Apple Stock Revenue Warning: Apple started the year by shocking its investors. On Jan. 2, Tim Cook released a letter that included the following statement: "Based on these estimates, our revenue will be lower than our original guidance for the quarter, with other items remaining broadly in line with our guidance." At first blush, that may not seem like huge news. However, it's important to remember that AAPL hadn't issued a revenue warning since 2002. For all its ups and downs, it never missed so badly on a phone-upgrade cycle that it had to issue a revenue warning. The recent shortfall didn't come totally out of the blue. Apple's decision to stop reporting unit sales last year was a clear indicator that things were starting to go dreadfully wrong for the company. Furthermore, the size of the miss was dramatic. On last quarter's earnings call, the company estimated that its revenues for its December quarter would be $89 billion to $93 billion. In Cook's letter, the outlook was slashed to just $84 billion. This shows that Apple's management had a terrible read on the outlook of demand for its products. China Issues: It's not hard to see what caused the miss. In his letter, Cook noted that all of the year-over-year decline in revenues were due to falling sales in China. Analysts have speculated that Apple would struggle in China for awhile now. Unlike in most other markets, Apple's operating system is not a killer feature in China. Rather, WeChat is the main attraction for China's smartphone buyers, and it runs on any smartphone. As a result of this situation, Apple's pricey phones are falling prey to cheaper competition. Adding to the concern, on Friday Reuters reported that key Apple supplier Foxconn is cutting 50,000 contract jobs. It's normal for Foxconn to lay off workers on a seasonal basis as demand fluctuates. However, its most recent layoffs came months sooner than usual. Recently, it was reported that AAPL had asked its suppliers to prepare for a 10% decline in phone production. The layoffs by Foxconn confirm that speculation. App Store Problems: Those who are bullish on Apple stock say that the growth of the company's services revenue will boost the shares. Wall Street loves services revenue, as it tends to consist of subscription revenue or other recurring income. That is the case for AAPL; it earns tons of recurring money from its app store. However, AB Bernstein analyst Toni Sacconaghi thinks that AAPL could lose some of this revenue.CNBC recently described Sacconaghi's thesis: As part of that regular Services revenue, Apple charges between 15 percent and 30 percent of monthly subscriptions for customers who buy software via the iOS App Store, a fee that's come to be known as the "Apple Tax." Any time a a user buys an iOS app, a digital item within an iOS app (e.g., an ebook) or initiates a subscription within an iOS app (e.g., a New York Times subscription), Apple takes a 30 percent cut for the first year and 15 percent for all subsequent years. Unfortunately for Apple, more and more companies like Netflix (NASDAQ:NFLX) and Spotify (NASDAQ:SPOT) are trying to avoid paying this "Apple Tax". Given the powerful position of some of these leading apps, they can credibly threaten to leave the app store if they don't get a much better deal. Apple's services segment grew 18% last quarter, with the 30% app store "tax" driving nearly half of that revenue growth. If the tax revenue goes away, AAPL will have difficulty growing its overall services revenue. ### The Pros of Apple Stock Attractive Forward Returns: I've been bearish on Apple stock in the past. Last summer, for example, I suggested that Apple would be a victim of the Winner's Curse. In other words, I contended that because AAPL was the largest company in the world, it would have trouble continuing to grow. Since I wrote that column, Apple stock has tanked. More recently, in December, I estimated Apple's 2023 earnings per share and derived a 2023 price target for Apple stock of $233. Since the price of Apple stock was $175 at the time, I didn't think that AAPL was a great investment. With the price of Apple stock now $155, however, $233 is starting to look pretty nice. If AAPL stock ends 2023 at $233, a buyer of AAPL stock today will earn more than 8% per year from the appreciation of Apple stock price. Throw in the dividend, and the investor's annual return rises to more than 10%. That's not a home run, by any means, but it's a very solid performance from a relatively conservative, blue-chip stock. Discounted Valuation: Related to the previous point, AAPL stock finally looks compellingly cheap. I've long criticized the stock for being overvalued, given the minimal growth prospects of AAPL. After last year's selloff of Apple stock, however, the market has finally priced in this reality. Down here under $160 per share, Apple stock is selling at just 13 times AAPL's trailing earnings and 12 times its forward earnings. Additionally, the stock's price-sales ratio has fallen under three. Since 2010, the price-sales ratio of Apple stock has only fallen below three for two brief periods; once for a few months in 2014 and for one quarter in 2016. Both turned out to be fantastic buying opportunities. Improving Macroeconomic Conditions: I still believe that we'll get a resolution of the U.S.-China trade war fairly soon. Recent headlines suggest that President Trump is looking for a speedy resolution to try to boost the stock market and may make concessions to get there. A thaw in the trade war would be great news for Apple, as its recent revenue shortfall was mostly caused by slowing Chinese sales, according to AAPL. On top of that, the recovery of the stock market and the strengthened economic outlook should help bolster both Apple's revenues and Apple stock. ### The Verdict on Apple Stock Apple's era of rapid growth has ended. I've been saying that for a long time, and the market has now come to that conclusion as well. However, AAPL stock can still make you money, now that it has firmly transitioned from a growth play to a value name. I expect Apple stock price to head back over $200 over the next couple of years. The combination of the company's stock buyback, its dividend, and its stable, robust cash flows is great for conservative, income-seeking investors. While AAPL stock is unlikely to deliver spectacular returns again anytime soon, it can be a solid contributor to your portfolio. At the time of this writing, Ian Bezek held no position in any of the aforementioned securities. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post The Pros And Cons of Apple Stock appeared first on InvestorPlace.
Last April, Spotify surprised Wall Street bankers by choosing to go public through a direct listing process rather than through a traditional IPO. The direct listing provided liquidity for shareholders, but unlike most traditional IPOs, did not raise any money for the company.
Fyre Fight: The inside story of how we got two warring Fyre Festival documentaries in the same week Scott Tobias, The RingerWe've known for a while now that Hulu and Netflix were both working on documentaries chronicling the ill-fated influencer trainwreck that was the Fyre Festvial.
Apple's business woes might not end with slowing iPhone sales. Issues with the company's App Store could be "the next shoe to drop," a Wall Street analyst says.
Financial Timessources claim the service plans to launch the in-car player sometime later in 2019 for roughly $100. While the earlier leak mentioned voice control, the add-on would also include preset buttons that take you directly to playlists. Both Spotify and its reported hardware partner, Flex, have declined to comment on the apparent scoop.
Slack Changed ‘Simply Awful’ Logo: Is an IPO Coming Soon?Slack If you work in an office environment, then you’re probably using Slack—or at least you must have heard about it. Slack Technologies, a provider of cloud-based apps and services,
Top analyst Toni Sacconaghi tells clients that more companies are refusing to pay the fee that Apple collects for app transactions, posing a headwind to its Services segment. "Netflix, Spotify, and Fortnite have all stopped / threatened to stop paying the so-called 'Apple Tax' of 15 to 30 percent on App Store revenues," Sacconaghi writes. Apple has heralded Services — which includes the App Store, Apple Music subscriptions, Apple Pay and iCloud storage — as its next revenue generator.
Apple (AAPL) is likely to lower hiring rate in some of its divisions, except the AI team where the pace is expected to remain strong.
What’s Coming Up in Twitter’s Q4 2018 Earnings Report?(Continued from Prior Part)Tightening race for advertising dollars Twitter (TWTR) is in an industry that continues to see tightening competition. In addition to the company’s traditional
Apple Updates: Verizon Deal, HomePod in China, and MoreApple inks deal with VerizonApple (AAPL) has deepened its ties with the US (SPY) top mobile carrier Verizon (VZ), as it is offering Apple Music free services with some of Verizon’s premium